Posted on 10/09/2025 4:36:21 PM PDT by CFW
Tricolor is another one. Missed or ignored?
“U.S. Banks Missed Warning Signs on Tricolor. Now, Their Losses Are Adding Up.”
“Chu’s Tricolor Auto Group had recently opened a 258,000-square-foot maintenance center outside Phoenix to repair and recondition the used vehicles it sold to its core market of Spanish-speaking immigrants. The facility—its second, after one in Texas—was to anchor a western-state expansion.
Rating firms had just graded Tricolor’s latest round of securities backed by its auto loans, pushing the total volume of its rated bonds past $2 billion. S&P Global Ratings gave the biggest slice of the security an AA rating, its second-highest ranking.
Previous baskets of Tricolor auto loans were bought by Wall Street giants JPMorgan Chase, Pimco, and AllianceBernstein. Among Tricolor’s backers was BlackRock, the world’s largest asset manager, which had cast the chain’s focus on the Hispanic community as consistent with its social-investing goals. JPMorgan and Barclays had provided the company with a line of credit.
“We have conviction that our differentiated approach enables us to deliver consistent, predictable and positive outcomes,” Chu said in a June 11 statement announcing the Barclays-led securitization.
Less than three months later, his auto empire lay in shambles. On Sept. 5, Tricolor abruptly closed its 65 lots across six states before filing for liquidation under Chapter 7 of the U.S. bankruptcy code. S&P put its auto-loan-backed securities on watch for downgrades before suspending its ratings entirely, and some of the company’s lenders have flagged their exposure in regulatory filings.
As Tricolor benefited from Wall Street’s largess, U.S. banks and ratings firms appear to have missed or overlooked warning signs. So too may have the U.S. government, which awarded Tricolor a special U.S. Treasury certification in 2019.”
wow. they must have sold a bunch of invoices.
Aaaaannnd...it’s gone.
Maybe it will be found they bought crypto currency with the missing cash.
Off-counter sales of over-valued assets,hidden debt,and internal company self-purchasing of debt and contracts is what bankrupted Enron.
Enron was designed as a fraud from day one ...
So too may have the U.S. government, which awarded Tricolor a special U.S. Treasury certification in 2019.”
https://pki.treas.gov/crl_certs.htm
apparently the financial “geniuses” at some of the biggies like JP Morgan Chase just shovel billions into black holes with little to no due diligence ...
That's the REAL business model. Bingo.
I believe the lawyer. My bet is that it's been laundered and moved out of the country by now.
Hint. They may want to start by looking at the bank that the company used. The money trail would start there.
Or a few invoices multiple times.
Just noticed both First Brands and Tricolor were Texas bankruptcies.
A Texas bankruptcy insider mentioned the other day that bankruptcy volume was way up.
“Chu’s Tricolor Auto Group had recently opened a 258,000-square-foot maintenance center outside Phoenix to repair and recondition the used vehicles it sold to its core market of Spanish-speaking immigrants.
Thanks for posting that.
Most of those names are very familiar in the Shade Tree Mechanic community, especially the trailer hitch/controller outfits.
“Here is First Brands:”
Crazy, isn’t it?
“apparently the financial “geniuses” at some of the biggies like JP Morgan Chase just shovel billions into black holes with little to no due diligence ..”
Which is why I take their economic forecasts and financial recommendations with a grain of salt....and then ignore them.
I PERSONALLY HAVE USED & STILL USE A NUMBER OF THOSE BRANDS
I WONDER IF THEY WILL GET SPLIT UP & CONTINUE?
FRAM FILTERS
RAYBESTOS BRAKE PARTS
TRICO WIPER BLADES
TEKONSHA TRAILER BRAKE PARTS
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